 Welcome back folks. This one is about how to build a Strong watch list and how to do this. I'll show you a little pointers on how we built today's watch list How did we come up with a few tickers that end up being doing pretty much? Okay, more than okay. So basically Before the market opens You have to look at what's moving who's moving which ticker is moving up Who's the best out there and why is it moving up and this morning? We had MIDD and WBT MIDD offered shares for buying WBT and You have to look at the news and why is it going up like this and when you look at the small prints you see that WBT was offered a zero point one two four zero times the shares of MIDD And when you look at the price of MIDD the correlation between the two didn't match The price of WBT was still too low. It should have been around $20 to compensate the The number that they were offering. So basically looking at it pre-market. We pretty much know it's going to move Further, I'll give you another example. Let's say MIDD offered shares Flat flat fee of $19 a share basically what's going to happen WBT is going to go flat at 19 because you know they're gonna get bought from 19 Who's gonna buy for more when when the MIDD is gonna give them 19 so you have to look at small prints Why is it moving up and is there room for anything further? We called the in the watch list saying 17.5 C for May obviously the monthly if you buy anything for the premium under 2.5 it brings you to to 20 at expiration if it expires at 20 it brings you to break even so anything further than 20 or while we get there on our way to the Mid-May when the expiration occurs You'll make money on anything above 20 if you buy something if you buy a premium under 2.5 So basically this is pretty much what happened if you look at what happened at the open it pretty much took off almost right away and If you took the 17.5 C they were around 240 250 very close to that and At the end of day, they were almost doubled or even a little more than that because I think they went a little over $5 so that's a 100% play on something that still has four weeks until expiration. So When you build your watch list you look at who's moving Widely and why and this was a Acquisition for my my DD and they had room to move further Um, who else is moving the market lately in the news. We have Kathy Woods Kathy Woods from ARC Will buy and sell and a lot of people will follow her plays and you know that if you look through the news You'll see that she bought Palantir PLTR and At the open we are opening just above the 200 EMA and start we started to take off from there Which is a you know, almost 4% play Interday which is pretty good for PLTR. So this was in the watch list. Why because Kathy Woods is not I'm not Commenting at all. Um, if the ARC is good a good analysis Or is a good investment firms or anything I'm just commenting on the fact that a lot of people are following what she's doing So this will bring volume and to that I invite you to look at the volume providers video that we have posted a few months back and It will give you a few ideas and few pointers on how to build your own watch list as well Now what else you can look at? earnings Which earnings we had yesterday that we're really worth Noting we had Netflix Netflix tanked after reporting although they beat But a lot of people were a little concerned about a few things I'm not going to get into the details However, who's gonna get affected people in the same kind of field and we have Roku and Roku had this overreaction on Netflix earnings. Why am I saying that it's an overreaction? I'm saying overreaction because this reaction doesn't belong to them. It's not something that is affecting them Directly, so basically you have the overreaction and you know that the at the open We should have Something that's going to start moving up At least to yesterday's close. So this overreaction will get bought and we'll move up to where we were yesterday Why because there was nothing in Netflix's earnings that affected Roku in a negative way and You see what happened? Obviously they have you have people that have long-term investments with a stop-loss that gets triggered right when the Bell rings not After hours or before the market opens So basically this is what happened We must have had a few my triggers a few stop losses triggering However, you see that we got a wick at the bottom and it got bought right away So if you look at the previous day, it moved back up to the previous days Price activity pretty much as planned. So this was in a watchlist as well You know that this overreaction will get a move up Who else had earnings? We had ISRG ISRG One would think that with the pandemic They will have a better Business situation because they're working from further away people are now thinking that we don't have to be physically present and This this idea of having The pandemic pandemic going away a CEO said their their numbers are Going to look even better now that the pandemic is on its way out. Hopefully so the previous all-time high was a 2681 Which is the yellow line in this chart here as a 2681. Yeah yellow line Basically, we're moving above all-time high after earnings Basically, we're no man's land. No one's bought there before so, you know that at the open a lot of people will be Because we've hit all-time high some people will take profit. However, same thing that wick is down Precisely to the 200 EMA on the five minute and it bounced right there Took off right away because it was very bullish a lot of firms upgraded The price target some upgraded it from underperformed to perform Which was extremely bullish And it ended up being almost up 10% on a $900 ticket, which is very impressive. So This one was in the watch list following excellent earnings just like Netflix was in Roku was in the watch list because of an overreaction on Roku we had news on Ark and Kathy Woods entering PLTR and We had news on WBT getting bought and this was all in the watch list and We ended up playing Tesla. Tesla went for a bounce on Pretty much below the 700 line, which was bought right away. The reason for that is pretty simple We have earnings next week it was Driving lower due to a neck an accident that happened Unfortunately, and we had two people dying in the accident. However, it was covered through a few investigation and I think the mosque was saying that The autopilot was not enabled during the during the accident so Basically, a lot of people are now more bullish on it. There is a price target that was increased on The on the ticker. So basically we took off from there took profit very early And as we said with the Roku play the Profit we took was at first resistance lines, which was support from the pre-market and Here you see pre-support pre-market. This is where we We took first profit and there are a few lines, you know, all this here is old support that should or could become a Resistance and same thing here this line here, and it's a little lower here Well, you see that it gets rejected here, and then it keeps going afterwards in this same thing It was just a little bit below and then it kept on going so It ended up it ended up being a Tesla day super high However, you have to remember that the idea is taking profit on the way up Taking profit on your targets that you're comfortable with because you have a plan behind your head you ha and a plan that is written down before you enter the play and Like I always say no one will ever go bankrupt selling green So I hope this is helping a little bit on how to build a watch list remember look at news earnings what's moving who's into something and earnings that are coming up and I hope this is helping. Let me know take care folks